back to article Cray will realise 'substantial' loss. But Shasta minute, folks, big iron market will pick up

Supercomputing remains a tough place to do business, with Cray warning investors that it expects to report a siginificant net loss for both 2018 and this financial year. Today's announcement included the prediction that revenue in 2019 will grow “modestly” over a preliminary result of around $450m in 2018 (compared to a full- …

  1. Roger Kynaston


    Presumably their next big toy will be called Cor. Apologies to the shade of CS Lewis of course.

  2. Ledswinger Silver badge

    $240m will only help if the "activists" stay away

    If Shasta is delayed materially against expectations, current sales dry up faster, future revenues are further out, and potentially an additional eighteen month delay could completely wipe out the cash assets. This won't be lost on the real vultures, who will be wondering how to force the company to pony it up to investors. That's payday 1 either as a cash dividend, or by selling the stock. Then, with Cray in trouble and limited resources, there's more money for the same people, by shorting the stock - that's payday 2. And if Cray goes bust, then the assets including the name, IP and staff can all be picked up on the cheap, before a further trade sale or a fresh IPO in a few years time, which is payday 3.

    1. ToddRundgrensUtopia

      Re: $240m will only help if the "activists" stay away

      Cray goes bust every 10-15 years. SGI the same., but the US gov will make sure they remain viable.

      1. Ledswinger Silver badge

        Re: $240m will only help if the "activists" stay away

        Cray goes bust every 10-15 years. SGI the same

        You're right, and I'd not thought of it as (in fashionable parlance) a natural cadence, and seems we're thinking along similar lines: Just like a magnetic polarity reversal, we're overdue for a Cray bankruptcy.

        Maybe a Cray bankruptcy likewise leaves a record in sediments, so that future geologists will be able to use it to date rocks.

  3. Griffo

    Talk About an Own Goal

    Lets hope that the Cray Shasta is more successful than the Alteon product of the same name.

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